The first task to address immediately is that of ‘toxic assets’. Even if this requires the nationalisation of a substantial number of banks governments shouldn’t hesitate to do so. Nationalisation is the only fair policy. Instead of lending or giving money to banks, by selling them bank shares once recovery begins, governments can recoup their taxpayers’ money. Looking to the future, if the financial system is to function well we need our markets to have a social dimension. To avoid repetition of this crisis we must:
Re:"How to beat this crisis and head-off another" I don't think you can beat off another crisis like this by following your shortlist of *what to do*. In my view structural deficit is reflected by onerous *opt out* clauses negotiated by UK and others to avoid full implementation of Maastricht Treaty. The q' which henceforth will become critical and decisive for survival of EU (under Lisbon Treaty) is the issue of structural asymmetry between member states irrespective of their national circumstances. Moreover it will become politically imperative that all member states adopt euro/single market provisons and its functioning rational for national financial institutions.Otherwise during a subsequent meltdown the consequences may be so serious that EU may be obliged to break-up into a two tier (membership) system. For normative internal supervision of financial institutions (by ECB) the basic requirement is the provision of structural symmetry; i.e. full application of Maastricht and Euro regulations across the internal market irrespective of local conditions.Opt Out's have incidentally created the most incomprehensible form of policy dilution of Masstricht Treaty and Single Market mechanism detrimental to long term validation of Euro. From now on, EU membership must mean you're for euro and not against it.
I don't think you can beat off another crisis like this by following your shortlist of *what to do*. In my view structural deficit is reflected by onerous *opt out* clauses negotiated by UK and others to avoid full implementation of Maastricht Treaty. The q' which henceforth will become critical and decisive for survival of EU (under Lisbon Treaty) is the issue of structural asymmetry between member states irrespective of their national circumstances. Moreover it will become politically imperative that all member states adopt euro/single market provisons and its functioning rational for national financial institutions.Otherwise during a subsequent meltdown the consequences may be so serious that EU may be obliged to break-up into a two tier (membership) system. For normative internal supervision of financial institutions (by ECB) the basic requirement is the provision of structural symmetry; i.e. full application of Maastricht and Euro regulations across the internal market irrespective of local conditions.Opt Out's have incidentally created the most incomprehensible form of policy dilution of Masstricht Treaty and Single Market mechanism detrimental to long term validation of Euro. From now on, EU membership must mean you're for euro and not against it.
The fourteenth edition of Europe's World is out. We feel it's fair to say that few if any publications in the field of international relations and policy debate have grown as fast or widened their scope so remarkably as Europe's World. Table of contents of Issue 14.
The search is on for 'global governance' solutions to the world's economic and political problems. The trouble is, of course, that there's not much agreement across Europe or around the world on what sort of policy instruments, institutions and rules would open the way to a fairer international system serving the needs of North and South, East and West while avoiding the pitfalls that led to the global crisis. Read more
IS HOME-GROWN TERRORISM A FAILURE OF INTEGRATION POLICIES OR THE SYMPTOM OF A WIDER CRISIS?
What do YOU think?